Lobo's Investment

Tonight, I had the following conversation with my little son while I was driving home from the golf course.

"Dad, you are so good at investment, why you still need a financial advisor?"

"A financial advisor can help me to get information and do analysis for investment, thus would help me to do better."

"I see. You pay some money and get higher chance for successful investment."

"Right..."

"But, how do you know the financial advisor really know?"

...

To begin with my evalution, I first compare the performance of my investment in bank with the portfolio account which decided together with my financial advisor. The performance together with the relative performance was plotted. The investment return is roughly 10% in half year for both set. This is a reasonable return I am expecting.

At the beginning, the performance was not so satisfactory, the IFA portfolio was negative relative to my existing investment in bank, but the problem was rectified quickly. The start up portfolio was proposed by the IFA. From the data I plot, at the first stage the IFA set only got 1 better sample out of 8 (I take sample about every 10 days) when compare with my existing investment. That's rather disappointing. So, I asked for a review and switched out the underperforming funds. The changes made in Feb was effective. Then, I added fund to the IFA when the portfolio turn positive relative to my existing investment. As I was strong over the decision of the investment, I am not sure how well my advisor can do.

It's still way too early to say that the portfolio with IFA is better, but for sure the ideas and information provided by IFA would strengthen my investment as a whole.